Implementing Strategy

A Managerial Exercise

Anyone can craft strategy but it takes real managerial skill to implement it

Eight Actions of Implementing Strategy

Build an Organization
Marshal resources Institute policies Pursue best practices and continuous

improvement Information and operating systems Tying rewards to strategy and goals Shape corporate culture Exert leadership

Building a Capable organization

Staffing
Build core competencies Develop an appropriate organizational

structure

Building a Capable organization

Staffing

Find the right people

Background,

experience, values, personality and management style

Build core competencies

Find

out what competencies ae needed Develop the ability to do something Hone skills with experience

Building a Capable organization

Build appropriate structure

Structure must support strategy What value chain activities should be performed inside the company and which outside Structure internal organization around core value chain activities.- what we do well How much centralization and decentralization Dont build walls Link to suppliers and strategic allies

Marshal Resources
Marshal Resources

Move resources to areas where the strategy requires Insure ther are enough resources to fund new initiatives Reduce resources where not needed

Policies and procedures

Provides top down guidance about how

certain things need to be done

Helps align the action and behavior of company personel with the requirements for good strategy execution Places limits on independent action and helps overcome resistance to change

Policies and procedures

Helps enforce consistency in how

strategy-critical activities are performed in geographically scattered organization units. Promotes the creation of a work climate that facilitates good strategy execution

Best Practices and Continuous Improvement

Bench Marking

Find the best approach a particular task Collaborative effort to share information Reverse engineering Modify best practice tofit the companys situation Continue to modify as situation changes

Best Practices and Continuous Improvement

Reengineering

Large scale changes in process, organization or structure when current structure is not acceptable A large, one time move towards a new plan. Continuous examination of processes, organization and structure to get imcrementally better. Bottom up structure

Total Quality Management

Information and Control Systems

Operations Control of equipment
Information On line data systems Communications email, internet,

company intranet Sales and Marketing e- commerce

Reward Systems
Reward the right things
Monetary rewards Non monetary rewards

Reward employee for results not

activities

Guideline for a good executive compensation

Performance payoff must be a big part of

compensation Everyone should participate Be fair and ethical in administering rewards Link reward to strategy implementation Executive must be able to influence his performance Keep time between accomplishment and reward short Mix non monetary and monetary rewards Forget about rewarding activities instead of results